U.S. Lifts Waiver on Iran’s Chabahar Port, Casting Doubt on India’s Strategic Project

22.09.2025

Starting September 29, all companies working with Iran’s Chabahar Port risk U.S. sanctions under the IFCA law.

For India, Chabahar is a vital hub on the Gulf of Oman, providing access to Central Asia and Afghanistan. Under Indian Ports Global Limited (IPGL), container turnover surged from 6,000 to over 90,000 TEU in just two years. In 2024, IPGL signed a 10-year deal with Iran, pledging $370 million in investments.

The removal of the waiver undermines India’s plans to expand regional trade and creates a diplomatic dilemma: balancing ties with both Washington and Tehran is becoming increasingly complex.

Amid U.S. pressure and tariff disputes — Indian imports recently faced doubled duties of up to 50% — the future of Chabahar’s modernization now hangs in the balance.

Indian Ports Global Limited (IPGL) is a state-owned company founded in 2015 to develop overseas port projects. Chabahar is a port city in southeastern Iran, located in Sistan and Baluchestan Province on the Gulf of Oman.